Uncollected sales tax can compound into a six-figure liability across multiple states — often discovered only after a state notice or acquisition due diligence.
The core question is whether the business has an obligation to collect and remit sales tax in a given state. The answer depends on nexus — the connection between the business and the state that triggers a collection obligation. Get the answer wrong, and the liability accrues retroactively from the date the threshold was crossed.
Since the Supreme Court's 2018 Wayfair decision, every state with a sales tax has enacted economic nexus legislation. Cross $100,000 in sales in a state — in some cases, fewer — and the obligation to register, collect, and remit begins. No physical presence required.
If your business sells across state lines, you likely already have unregistered sales tax exposure — whether you have identified it or not. Liability does not begin when you discover it. It starts on the date the threshold was crossed, and interest accrues from day one.
Every state with a sales tax has enacted economic nexus legislation. Revenue thresholds vary by state — typically $100,000 in sales or 200 transactions per year.
Employees, offices, warehouse inventory, contractors, trade shows — physical nexus operates alongside economic nexus. A business can have both in the same state.
The liability starts on the date the threshold was crossed — not the date it was discovered. Interest accrues from day one.
A business selling online, licensing software, or using third-party fulfillment can have obligations in dozens of states — without a single employee outside its home state. By the time the exposure surfaces, five to seven years of uncollected tax may already be on the books.
Selling physical products to customers across multiple states — including those using Amazon FBA, Shopify, or other platforms that distribute inventory across fulfillment centers.
Whose product taxability varies dramatically by state — some states tax SaaS as a service, others as tangible personal property, and others exempt it entirely.
With wholesale and retail channels, where resale exemptions, drop-shipping arrangements, and multi-tier distribution create layered nexus and taxability questions.
That have crossed economic nexus thresholds in one or more states without registering, where the gap represents unregistered, uncollected liability.
Where a sales tax exposure review is required to quantify unaddressed liabilities before a transaction closes.
With identified historical exposure who wish to come forward proactively before a state initiates contact, while voluntary disclosure program benefits remain available.
Expanding into new states through hiring, warehousing, or revenue growth — for whom a nexus assessment conducted before expansion is materially less costly than one conducted after.
One compliance calendar. One reconciliation process. One team monitors thresholds, deadlines, and rate changes across every registered state.
A systematic nexus determination — examination of revenue by state (current year and prior periods), operational footprint, and product taxability profile. The output is a nexus map: jurisdiction-by-jurisdiction determination of where a registration obligation exists, when it arose, and estimated exposure for any unregistered period.
Not all revenue is taxable in all states. Software delivered electronically is taxable in some states, exempt in others. Professional services are generally exempt but taxable in a meaningful minority. For businesses with multiple product lines, taxability analysis must be conducted separately for each category in each nexus state.
Once nexus is confirmed, TYM manages the registration process — preparing and submitting applications, obtaining sales tax permits, establishing filing frequency (monthly, quarterly, or annual), and setting up the compliance calendar. For businesses registering in multiple states simultaneously, the process is coordinated rather than sequential.
For businesses with identified prior-period exposure, voluntary disclosure programs limit liability and penalty exposure. Most states offer a defined look-back period (typically three to four years), penalty waiver or reduction, and interest abatement in exchange for registration, filing of back returns, and payment of outstanding tax.
TYM prepares and files sales tax returns for each registration state on the required schedule — monthly for high-volume states, quarterly or annually for lower-volume jurisdictions — reconciling taxable sales to the business's revenue records and applying applicable exemptions.
Multi-state sales tax compliance is a recurring obligation with different deadlines, filing frequencies, and remittance schedules in each state. TYM maintains a compliance calendar mapping state return due dates, estimated payment schedules, filing-frequency review triggers, and registration renewal requirements.
TYM requests state-by-state revenue data for the current and prior three years (or longer where warranted), along with a description of operational activities by state — employees, contractors, inventory locations, and any other in-state presence. This data is reconciled to the general ledger before the nexus assessment is finalized.
TYM determines economic and physical nexus by state, identifies the threshold-crossing date for each state with economic nexus, and estimates the prior-period tax exposure for states where the business was unregistered. The taxability profile for each product or service line is assessed simultaneously.
For states with prior-period exposure, TYM assesses voluntary disclosure eligibility and recommends a sequenced approach — which states to address through voluntary disclosure, which to register currently without prior-period exposure, and how to coordinate the timeline to preserve voluntary disclosure benefits.
TYM manages the registration process across all identified states, prepares and files back-period returns required for voluntary disclosure, and establishes the ongoing compliance calendar — return preparation, filing, and threshold monitoring across every active state.
Fees depend on the number of nexus states identified, whether prior-period voluntary disclosure is required, the complexity of the taxability analysis, and the volume of ongoing return preparation. An initial nexus assessment for a business with revenue in ten to fifteen states is a defined project with a fixed fee. Ongoing return preparation is typically structured as a recurring monthly or quarterly engagement based on the number of active registrations.
TYM provides a fee estimate after the nexus assessment confirms the full scope.
Request a Sales Tax Nexus AssessmentTYM Business Consulting provides sales tax nexus assessment and multi-state compliance services for businesses in Miami, South Florida, and nationally. Miami's concentration of e-commerce businesses, international trade companies, and technology startups creates a wide range of multi-state sales tax obligations — particularly for businesses with fulfillment operations, remote employees, or significant online revenue.
The process starts with a nexus assessment — a structured review of revenue by state, operational footprint, and product taxability. TYM provides a written assessment with jurisdiction-by-jurisdiction exposure estimates before any registration or disclosure decisions are made.
This page is for informational purposes only and does not constitute tax or legal advice. Tax obligations depend on individual circumstances. Consult a qualified CPA for guidance specific to your situation.